The ongoing trial of renowned crypto figure Sam Bankman-Fried, known as SBF, took an intriguing turn on Day 3. Key witness and FTX Co-founder, Gary Wang, provided startling revelations about alleged fraud committed by SBF. As the prosecution delved deeper into the case, Wang’s testimony shed light on a range of illicit activities purportedly undertaken at FTX.

Wang’s testimony, which was documented in a thread on the X platform by Inner City Press, disclosed that he, alongside Caroline Ellison, Nishad Singh, and notably SBF himself, conspired to commit crimes within FTX. This admission laid the groundwork for the prosecution’s emphasis on wire fraud. Wang further explained that the group facilitated unlimited fund withdrawals by Alameda Research, a move that aligned with the prosecution’s claims of criminal behavior. This was reportedly made possible through the utilization of a code.

Highlighting the hierarchical structure of FTX, Wang confirmed that SBF held approximately 65% ownership, while his own stake amounted to 17%. He emphasized that he directly reported to SBF, who held the final decision-making authority. With this foundation laid, Wang’s statement provided support for recent reports suggesting the existence of a backdoor between FTX and Alameda Research. Allegedly, such access allowed Alameda Research to withdraw customer funds and maintain an astonishing negative balance of up to $65 billion. The prosecution argued that this was one of two primary methods through which SBF allegedly siphoned over $10 billion from FTX.

Wang’s admission holds significance not only as a key witness but also as the first of three top executives and close associates of SBF expected to testify against him as part of their plea deal. Alongside Wang, Caroline Ellison, former CEO of Alameda Research, and Nishad Singh, FTX’s Director of Engineering, will also provide crucial insights.

Intriguingly, aside from exposing the alleged illicit activities, Wang revealed the origin behind the name ‘Alameda Research.’ Many within the crypto community have pondered why a crypto trading firm would be named with an emphasis on ‘Research.’ According to Wang, this was SBF’s idea. ‘Alameda’ was chosen because the company was based in Alameda County, while ‘Research’ was intended to facilitate the establishment of a bank account under that name.

This revelation set the stage for the prosecution to present a recording in which SBF dismissed the possibility of naming the firm ‘Shit Coin Daytraders Inc.’ Instead, he advocated for the name ‘Alameda Research,’ suggesting that the term ‘Research’ resonated positively with people.

As the SBF trial proceeds, October 6 will see the defense counsel cross-examine Wang. It is worth noting that the prosecution mentioned concerns about time constraints in a trial initially projected to last approximately six weeks.

The courtroom saga surrounding SBF continues to captivate the crypto community and beyond, as each day brings forth compelling insights into the alleged wrongdoings and activities that occurred at FTX.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.